What is ocean freight in supply chain management?

Ocean freight in supply chain management refers to the transportation of goods across international waters using cargo ships. It is one of the most cost-effective and widely used modes for moving large volumes of goods, especially for long-distance and international trade. While slower than air freight, ocean shipping is the backbone of global commerce, carrying about 90% of the world’s goods by volume.

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How ocean freight works in supply chain management

1. Containerization – Goods are packed into standardized containers (such as 20-foot or 40-foot units), making them easy to load, unload, and transfer between ships, trucks, and trains.
2. Port operations – Containers are delivered to a port terminal, where they’re loaded onto cargo ships using cranes.
3. Transit at sea – Containers are transported across oceans, often as part of a larger multimodal journey.
4. Customs clearance – Once the ship arrives, goods must pass through customs at the destination port.
5. Final delivery – Containers are unloaded and moved by truck, rail, or barge to distribution centers, warehouses, or directly to customers.

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Types of ocean freight shipments

• Full Container Load (FCL): A single shipper uses the entire container, often for large or bulk shipments.
• Less-than-Container Load (LCL): Multiple shipments from different shippers share the same container, reducing costs but requiring consolidation and deconsolidation.
• Specialized containers: Such as refrigerated (reefers) for temperature-sensitive goods or flat racks for oversized equipment.

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Why it matters

• Global reach: Ocean freight connects continents and enables international trade at scale.
• Cost efficiency: Shipping by sea is usually less expensive than air transport, especially for bulk commodities and large shipments.
• Capacity: Container ships can move massive volumes of goods, making them essential for industries like retail, manufacturing, and energy.
• Sustainability: On a per-ton basis, ocean freight often has a lower carbon footprint compared to other modes like air transport.
• Resilience: When combined with real-time visibility, ocean freight can be more predictable, helping businesses navigate port congestion, weather disruptions, and customs challenges.

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Common questions about ocean freight visibility

• What is the difference between FCL (full container load) and LCL (less-than-container load)?
• What is an ocean bill of lading?
• What is the role of ports in ocean freight logistics?
• What is the difference between ocean freight and sea freight?
• What is ocean freight visibility software?

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Putting it all together

Ocean freight is the foundation of international trade, moving goods reliably and cost-effectively across long distances. In supply chain management, ocean freight visibility is essential for tracking containers, anticipating disruptions, and providing accurate ETAs to customers. By integrating ocean freight data with other transport modes in a multimodal visibility platform, businesses can build more resilient, efficient, and transparent supply chains.

In short: ocean freight in supply chain management is the use of cargo ships to transport goods across seas, and visibility ensures organizations can monitor, manage, and optimize every stage of the journey.